Avnet to Distribute Newisys' Enterprise-class Servers

4/16/2003 - Newisys(R) Inc. and Avnet Applied Computing -- AMD's Master Distributor and an Opteron(TM) Launch Partner -- announced a new distribution partnership for the Newisys family of rack-mountable servers. Avnet Applied Computing is the first Newisys authorized technology distributor for original equipment manufacturers (OEMs), system builders and value-added resellers (VARs). Under the terms of the agreement, Avnet Applied Computing will sell and support Newisys' line of enterprise-class server products, which are built around AMD's new 64-bit Opteron microprocessor for unparalleled performance.

"Newisys has partnered with Avnet Applied Computing in order to support the strong demand for Opteron-based server technology," said Phil Hester, CEO and co-founder of Newisys. "Based on the overwhelming acceptance of our seed program, we believe Avnet Applied Computing's unique market focus, global infrastructure and service model make this an ideal partnership. We anticipate this relationship will help Newisys quickly expand its current market reach."

The first in a family of server offerings, the Newisys 2100 Enterprise-Class Server enables the most demanding users to tap the full potential of the AMD Opteron processor, including flexibility, scalability and reliability. Newisys' servers are capable of simultaneously running 32- and 64-bit Linux applications, plus 32-bit Microsoft(R) applications. The servers remove the upgrade hurdles for corporations looking to switch to 64-bit enterprise applications by providing instant upgrade capabilities when the Microsoft Windows Server 2003 edition for Opteron systems becomes available. Data processing-intensive applications will see a performance boost by upgrading to 64-bit technology by doubling the amount of data that can be accessed per clock cycle, significantly increasing overall output. An enhanced feature of the Newisys family of products includes a stand-alone service processor offering remote, "lights-out" system management capabilities, dramatically simplifying the administrative complexities of running a data center.

"The partnership between Avnet Applied Computing and Newisys will bring immediate market traction to system builders looking to leverage the advantages of AMD's Opteron processor for their customers," said George Condon, executive vice president and head of Avnet Applied Computing's AMD business unit. "Avnet Applied Computing's testing, certification, and reference designs, combined with Newisys' experience in the enterprise-server market, will provide a faster time to market for this emerging technology, creating a significant advantage for system builders."

Avnet Applied Computing has been working closely with Newisys an AMD to ensure that several Opteron-based reference designs are available for system configuration on Opteron's launch day. Avnet Applied Computing will also facilitate orders for Newisys severs with existing VARs, and provide an infrastructure to handle orders, status updates and sales reports. Newisys will benefit from Avnet Applied Computing's international presence, exposure to a wider base ofcustomers and assistance with demand creation.

"Avnet Applied Computing fills a niche in the second- tier server market for high-end, enterprise-level technologies," said Janet Waxman, vice president, Hardware Channels and Alliances Research at IDC. "Newisys is leveraging AMD's 64-bit chip design in order to encourage corporate users to invest in future technology upgrades now. Their distribution partnership with Avnet Applied Computing should help Newisys further develop channels to market in enterprise computing environments."

Newisys has signed relationships with multiple system builders to deliver its design to market by the launch of the AMD Opteron processor. Currently, the company has hundreds of seed systems at key partners and Fortune 500 accounts, and has several orders pending the release of the Opteron processor.

"We are looking forward to exceeding customer expectations with the RS-1164/op server based on the Newisys 2100 design," said Gene Kim, vice president of sales & marketing for RackSaver, one of the customers currently marketing pre-production systems. "Newisys' enterprise class design capabilities and Avnet's global distribution reach enables RackSaver to continue to deliver quality products, service and support to the enterprise server market."

About Avnet Applied Computing
Avnet Applied Computing, a Phoenix-based distribution specialist with operations in North America, Europe and Asia, focuses on the unique requirements of computing OEMs, independent software vendors and system builders who want to take their embedded systems or white box solutions to market quickly. Avnet Applied Computing offers a wide array of services, including engineering assistance, integration and support services, supply-chain management, financing, and physical distribution of end products.

Avnet Applied Computing, a $1.68 billion operating group of Avnet Inc. (NYSE:AVT), also markets off-the-shelf components such as CPUs, mass storage devices, flat-panel displays, embedded and commercial motherboards, memory modules, networking, mobile/wireless computing, point-of-sale and software products. Avnet Applied Computing is on the Web at www.aac.avnet.com.

About Avnet
Phoenix-based Avnet Inc. is the world's largest technology marketing, distribution and services company, with fiscal year 2002 sales of $8.9 billion (year ended June 28, 2002). The company distributes semiconductors, interconnect, passive and electromechanical components, embedded systems and computer products from leading manufacturers. Serving customers in 63 countries, Avnet delivers services such as inventory management, supply-chain services, bill-of-material analysis, systems integration and engineering design assistance. Its Web site is located at www.avnet.com.

About Newisys
Newisys(R) Inc., a technology company dramatically changing the server-computing environment, is dedicated to developing enterprise-class server technologies that enable greater levels of system management and modular scalability in the industry standard server space. Newisys offers a family of robust designs, based on the AMD Opteron(TM) processor targeted for integration into OEM and system builder server product families. A privately held company founded in August 2000, Newisys is headquartered in Austin. For more information, visit www.newisys.com.

Newisys(R) and its logo are trademarks of Newisys Inc.

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